Legal Battle: Axel Springer and Media Allies Sue Google for $2.3 Billion

In Brussels, Google Faces 2.1-Billion-Euro Lawsuit from 32 Media Groups, Including Axel Springer and Schibsted, Alleging...

In Brussels, Alphabet’s Google finds itself in the legal crosshairs, facing a hefty 2.1-billion-euro ($2.3 billion) lawsuit from a coalition of 32 media groups, Axel Springer and Schibsted among them, who assert significant losses stemming from the tech giant’s digital advertising practices.

This collective action, comprising publishers spanning numerous European countries, including Austria, Belgium, Bulgaria, and more, reflects a growing discontent with Google’s dominance in the digital ad market, especially as antitrust regulators intensify scrutiny over its ad tech operations.

According to a statement released by their legal representatives at Geradin Partners and Stek, the media consortium contends that Google’s alleged misconduct has stifled competition, resulting in reduced revenues for publishers and inflated costs for ad tech services. They argue that had it not been for Google’s purported abuse of its dominant position, European media companies could have enjoyed higher advertising revenues and lower operational expenses, potentially bolstering the region’s media landscape.

To support their claims, the group points to recent regulatory actions, such as the French competition authority’s substantial fine against Google in 2021 and the European Commission’s ongoing investigation into the company’s ad tech practices, underscoring the broader context of their legal challenge.

Google contested EU antitrust allegations last year regarding its involvement in both the buying and selling aspects of the ad tech ecosystem.

Global publishers have increasingly voiced concerns over the expanding influence of tech giants in advertising, as their own revenue shares dwindle. Analysts note Google's unrivaled dominance in the digital ad space.

Opting for a Dutch court, the consortium strategically chose a jurisdiction known for handling antitrust damages claims in Europe, aiming to consolidate legal proceedings across the continent.

Among the coalition are prominent publishers like Austria's Krone, Belgium's DPG Media and Mediahuis, Denmark's TV2 Danmark A/S, Finland's Sanoma, Poland's Agora, Spain's Prensa Iberica, and Switzerland's Ringier.

(Note: Exchange rate: $1 = 0.9247 euros)